- With a gain of 1.60% in GCB, the GSE-CI and GSE-FSI posted gains of 0.08% and 0.16% respectively.
- Government accepted all bids tendered to raise GHS 1,063.42m out of the GHS 1,261m it sought to raise from last week's auction.
ECONOMIC SCOOP
- Bank of Ghana to announce the Policy Rate today
- This follows the conclusion of the 95th Monetary Policy Committee meeting which was held from 22nd to 24th July 2020.
- We expect the Policy Rate to be maintained at 14.50% as the Central Bank monitors economic activity and inflationary trends following the mid-year 2020 Budget Review.
2. Minister of Finance presents mid-year budget review with focus on relief programmes and revision in macroeconomic targets
- As the economic fallout of the COVID-19 pandemic continues to wear on, the Finance Ministry sought approval for supplementary funding of GHS 11.90 billion to tackle rising expenditure.
- The review indicated Government’s plan to roll out a GHS 100 billion Coronavirus Alleviation & Revitalization of Enterprises Support (CARES) programme over the next 3 and half years to aid economic growth recovery.
- The Government intends to start a GHS 2 billion Guarantee Scheme in order to facilitate long-term credit to businesses at affordable rates to ensure job retention, while also rolling out the National Unemployment Insurance Scheme to provide temporary income support to workers who have lost their jobs.
- Real GDP growth has been revised down from 6.80% to 0.90%.
- Owing to revenue underperformance and increased expenditure, the fiscal deficit has been revised from GHS 18.90 billion (4.70% of GDP) to GHS 44.10 billion (11.40% of GDP).
- The Government has extended the free-water relief programme for the next three months, while free-electricity supply to lifeline consumers will run for the rest of the year.
- The Communication Service Tax (CST) will be revised downward from 9% to 5% at the start of September 2020.
